News & Reports News Year 2015 December 2015 China’s growth to be ‘reasonable’

China’s growth to be ‘reasonable’


CHINESE leaders, meeting ahead of an agenda-setting conference, pledged yesterday to keep the country’s economic growth in a “reasonable range” next year by expanding domestic demand and making supply-side improvements.
The goal was set by the Political Bureau of the Communist Party of China Central Committee that convened yesterday.
No numbers were reported for what leaders see as “reasonable,” but the meeting signals the annual Central Economic Conference — at which policy-makers is expected to map out economic and reform plans and targets — should open soon. China’s next five-year plan starts in 2016.
Last year, there was a Politburo meeting on December 5, and the pivotal economic conference was held between December 9 and December 11.
Xinhua news agency said macroeconomic policies will be kept stable while micro-policies will be flexible.
“While improving domestic demand, the country should raise the quality and efficiency on the supply side,” a statement issued after the meeting said.
In the first three quarters of this year, China’s economy expanded by 6.9 percent, generally in line with the government’s target of about 7 percent.
Premier Li Keqiang recently pledged to step up “supply-side” reforms to generate new growth engines while tackling factory overcapacity and so-called zombie firms.
The government will do more to help firm's lower costs, tackle property inventories and ward off financial risks.
The government will promote mergers and acquisitions, and let strong firms survive and weak ones close under the principle of “survival of the fittest,” Xinhua said.
China has taken a raft of policy easing steps to reach its growth target this year.
President Xi said that China must achieve annual average growth of no less than 6.5 percent over the next five years to hit the goal of doubling gross domestic product and per capita income by 2020 from 2010.
Leaders at the meeting said that authorities should reduce housing inventories, more migrant rural workers should be issued with urban-residency permits, which will allow them to purchase housing in cities, according to the statement.
China should also increase the urbanization ratio, which is based on the number of registered urban residents.
The ratio of registered urban residents to the population was 35.9 percent at the end of last year. A plan sets the target of increasing this to 45 percent by 2020.
Next year, China will continue to promote mass entrepreneurship and innovation by relieving financial strain for companies. Measures include reductions to transaction costs, taxes and social insurance fees, the statement said.
“China should prevent and resolve financial risks and defend the bottom line to eliminate systemic and regional financial risks,” the statement said.
The statement said a basic living standard should be ensured, while the protection of intellectual property rights and foreign firms’ interests will help industrial cooperation with other countries and improve the domestic investment environment.